Cisco reached its low several weeks ago and today it is still at the same level so basically the 10% market drop in the last 10 days has not knocked it down. I mention this as an indication that the stock seems to have bottomed. But regardless of that the company is fundamentally a great company. There is a lot of bad karma against Chambers, I personally like him I think he was a victim of his own past success, the stock became incredibly overvalued and after the dot com crash it never recovered from those levels which is comprehensible because they were absurd. But if you look at the company in the last decade it has never stopped growing, selling more, generating more cash and reducing its stocks outstanding. So there is a serious disconnect between the stock price and the company performance and the disconnect is because the stock simply was way way too overvalued by the end of the nineties.
Anyways the company is great and the price is great, my hope is that the market tanks more or at least long enough to deploy all my cash which is still quite a lot and I have the chance of already having identified several companies I would love to add more stocks to so I really do not care about this correction on the contrary I am glad it came, imagine if the market was up, I would be sad for me because I would have a lot of cash uninvested, now I finally might have a chance to deploy it. And I think it can go much lower, the market is still much higher than its level last year and the current situation does not look better.
PD: this post was originally meant as a reply to this comment from Joe Escobedo from a previous post.